ISTANBUL, (Reuters) – The lira fell 2.4% against the dollar Wednesday due to prospects of another Turkish interest rate reduction the following day and before a crucial policy decision of the U.S. Federal Reserve which might draw more money out of emerging market markets.

It fell to 14.75 against the U.S. dollar, close to the record low of 14.9 on Monday. It was at 14.70 GMT at 1312 GMT. This is more than 49% less than it was at the end last year.

Investors are concerned that the Federal Reserve may take a more cautious stance when it meets Wednesday. It will outline plans to tighten policy and raise interest rates next year.

Turkey’s central banking is likely to lower its policy rate 100 basis points Thursday, in spite of the steep lira slumped and rising inflation. President Tayyip Erdan exerts pressure to it to improve growth before 2023.

Erdogan’s plan for prioritising exports and lending led to a reduction of its key rate from 400 basis points down to 15%. Economists consider this reckless.

Over the last week, four instances have been made by the bank to intervene in the forex market. They sold dollars to help slow down the decline. The bank will make its rate decision on Thursday at 11:100 GMT.

Inflation has been exacerbated by the slide in the lire, which climbed to 21.3% for the third consecutive month. This is also hurting Turks’ wages and fueling discontent among the workers.

More than 250,000 healthcare workers were represented by unions that went on strike Wednesday to protest poor working conditions and low wages.